Frequently Asked Questions

Over the years we've seen many clients dealing with the same types of issues. We've listed several common questions below, with links to answers.

How can I stop creditors from harassing me?

You basically have 4 options available to you:

• Debt Consolidation.
• Negotiate settlement or new payment terms with creditors.
• File a Consumer Proposal.
• File for Bankruptcy.

How can I stop a wage garnishment?

A garnishee is a legal action that can be dealt with by:

• Negotiation of an arrangement with your creditors
• File a Consumer Proposal to stop the action
• Make an assignment in bankruptcy

What if I can't pay my income tax?

Income tax debt is the same as any other debt and you have these options:

• Negotiate deferred payment terms
• File a Consumer Proposal to settle the debt
• File for Bankruptcy

My income has shrunk. How can I manage?

Changes in income are quite common. Here are some options to consider:

• Budget counseling
• Filing a consumer proposal to reduce debt payments, or
• If all else fails, making an assignment in bankruptcy

How can I stop spending my grocery money on bills?

When this happens you must consider your options quickly:

• Prepare a realistic budget
• Negotiate new terms of payment with your creditors
• Consider a Consumer proposal to settle your bills
• As a last resort, filing for personal bankruptcy may be your only option

Am I going to lose everything I own?

If you go bankrupt or make a consumer proposal certain items you own are exempt from seizure under provincial law. These exempted items vary from province to province but generally include:

• Household goods
• A car
• Tools of the trade for your work
• In some provinces, the equity in the home you own

What will happen to my credit rating?

Your credit rating will be affected if you do not pay your bills on time. Credit bureaus will receive a notice of any bankruptcy or consumer proposal which they will report to future creditors for six years.

• BDO will advise you on ways for you to re-establish your credit rating.

How will personal bankruptcy affect my spouse and family?

In general terms, it is an individual that goes bankrupt and not a family. If your spouse has not co-signed for your debts they will not be affected by your bankruptcy except in determining family income available for payment to creditors.

We generally recommend that both spouses come to BDO to discuss their options together and to explore ways that they can work together to solving their financial difficulties.

Will my financial matters be kept private?

That depends on the services that you request of us.

• In the case of debt and budget counseling and informal arrangements and negotiations on your behalf with creditors, the information supplied to us remains confidential and will only be disclosed to others with your permission.
• In the case of you filing a Consumer Proposal or an Assignment in Bankruptcy, the Office of the Superintendent of Bankruptcy will maintain a record. In most cases there won't be any ad published in the local newspaper.

What are my options?

We hope the information you found here answered your questions and your concerns. You have a number of options now that you have visited our website. Some of those options include: informal negotiation with your creditors, filing a consumer proposal or filing an assignment in bankruptcy. To fully explore your options please click on the bar below.

For complete information and to answer your questions thoroughly, we encourage you to contact your local BDO office, request a call, or use our application form.